Sustainability and IT-Enabled Business Transformation

The assignment delves into the intersection of business strategy, sustainability, and information technology (IT)-driven transformations. It requires students to examine various theories and frameworks, such as resource-based theory and strategic management concepts, to understand how businesses can leverage IT for sustainable growth and competitive advantage. The analysis should encompass factors like environmental responsibility, social impact, and economic performance within a business context.

Business Strategy

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1, 1.2, 1.3..................................................................................................................................1
Covered in PPT............................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Organisational Audit of VW AG...........................................................................................1
2.2 Environmental Audit of Volkswagen....................................................................................3
2.3 The importance of stakeholders in preparing strategies........................................................4
2.4 New strategies for Volkswagen.............................................................................................6
3.1 Alternative strategies for Volkswagen...................................................................................6
3.2 Justification of selection of strategy......................................................................................7
4.1 Roles and responsibilities of personnel in strategy implementation.....................................8
4.2 Resource requirement for implementing new strategy for VW AG......................................8
4.3 Contribution of SMART targets in business strategy............................................................9
CONCLUSION................................................................................................................................9
REFERNCES.................................................................................................................................12

INTRODUCTION
Every organisation needs a plan for its growth and development so that it can achieve its
goals. There are various tools which are used by managers for making sure that organisational
development is as per the requirements. The market is becoming dynamic and to tackle all the
issues properly, a company requires business strategy which will enable it in achieving a higher
level of efficiency (Astrachan, 2010). The very long term survival of organisation is based on the
ability of managers to prepare a plan which fulfils all requirements. If a company wants to attain
a better productivity as well as profitability levels, then it will need a strategy that will assist its
activities. This research work is based on Volkswagen which is a known car manufacturing
organisation. Various tools and techniques are used in this assignment as to analyse feasibility of
all the activities that are conducted by company. Also a new strategy will be given that will allow
it in gaining better market positioning.
1

TASK 1
1.1, 1.2, 1.3
2

3

4

5

6

7

8

9

TASK 2
2.1 Organisational Audit of VW AG
There are various ways companies analyse themselves as to find our variances that exist in their
own capabilities. It is important as to ensure that each task is completed in a set period of time
(Bharadwaj and et. al., 2013). Volkswagen uses SWOT as a tool to evaluate its capabilities. It is
one of the most effective way of finding out the effectiveness of organisation and ensure that
each task is completed in a set period of time.
10

The SWOT of VW AG is stated below:
Strengths VW AG positions first in auto making and administrations. It is an automobile
producer that is serving in each fragment of vehicular transportation. The
qualities of organization are:
• Big mark name and picture in the market.
• One of the main participants in the auto advertise
• Highly successful workforce.
• One of the significant business (350,000employees are working at
exhibit.)
• Manufacturing offices exhibit in more than 27 nations.
• Great approach towards crossover and engine sports fragment
• Market and promotion office are exceptionally compelling.
11
Illustration 1: SWOT Analysis.
(Source: Six Sigma, 2017)

Weakness The organization has experienced a few issues and they are:
• Rapid ascend in number of contenders in industry most last couple
of years.
• The development rate is restricted because of rivalry
• Controversy identified with control of ecological examination has
harmed association picture.
• Loss in mark steadfastness because of debates and rivalry
Opportunities These are the elements that will help association in developing and keeping
aggressive edge:
• African showcase are exceptionally appealing commercial centre
for organization extension.
• Rise in individual’s capacity to spend can be explored.
• Tie-up and joint endeavours with non-German merchants will be
useful.
• More development and productivity will draw in customers
Threats There are sure factors that may hamper association capacity:
• Rise in the cost of crude material
• Restriction on offering fuel based auto from 204 according to the
natural laws.
• Government in creating country don't give association access
utilizing its capacities totally
• Introduction of inventive highlights by contenders
2.2 Environmental Audit of Volkswagen
It is necessary for companies to keep on analysing environment and its factors. So that they can
attain a better market positioning. There are variables that exist in the market and needs a proper
strategy as to be solved (Campbell, Edgar and Stonehouse, 2011). For making sure that each one
of them is tackled properly, the managers need to ensure that each task is completed in set time.
Volkswagen uses PESTLE analysis to understand and measure all the vital variables and their
impact upon organisation.
PESTLE of VW AG:
12

Political:
This factor applies a power that has coordinate effect upon organizations and their financial
solidness. Volkswagen is likewise influenced by political unsteadiness. Uncommonly since US
ecological debate, there is political obstruction in organization UK issues as to check on the off
chance that they are deceiving or not (Casadesus-Masanell and Ricart, 2010). Likewise, Brexit is
putting a considerable measure of weight on association as they require consent from both EU
and UK government in numerous exercises.
Economic:
The EU is attempting to get over monetary inconvenience it is confronting. Because of
this there is a ton of strain on UK economy. Changes in rates of crude material and swelling can
hamper organization.
Social:
There is more enhanced society today than it was there couple of decades prior.
Essentially, because of relocation and globalization distinctive individuals are there and they
have different requirements that must be satisfied by the association.
Technological:
Steady mechanical changes and advancement by contenders is putting a great deal of
weight on association (Eccles and Krzus, 2010). It is adding to higher cost yet must be adjusted
for making process more effective and increment association capacity to accomplish its
objectives.
Environmental:
There are distinctive sort of settlements which are being marked by countries to secure
environment (Elliot, 2011). As of late numerous EU nations and Britain have restricted offer of
unrefined based autos from 2040.
Legal:
Consistent float in political culture has affect upon legitimate laws. Each new
government needs to change things according to their necessity and for this enactments are
revised.
2.3 The importance of stakeholders in preparing strategies
Volkswagen is one of the biggest organizations on the planet and has a considerable effect upon
an involved parties. The company needs to lead partner examination for ensuring that its polices
13

and plans are not affecting them in a negative way (Hahn, Kolk and Winn, 2010). It is extremely
imperative for organization to comprehend what their partners really need with the goal that their
needs can be satisfied and long haul survivability can be accomplished. This help organization in
guaranteeing that they have every required asset accessible and consent from or connected with
gatherings to lead their exercises. As expressed in the lattice underneath, these partner must be
overseen in the accompanying manner:
KEEP SATISFIED
(Highly interested, more power)
These are the gatherings that must be totally
fulfilled. Likewise they are occupied with
organization exercises.
• Shareholders
• Employee's
MANAGE CLOSELY
(less interested, more power)
They must be educated on consistent premise
as to get best quality and authorizations on
time.
 Suppliers
 Government
MONITOR
(more interest, less power)
they can be educated inside a set time interim.
In any case, they need to guarantee that there
issue pervasive.
 Customers
 Financiers
KEEP INFORMED
(less interested, less power)
They do not need to be annoyed by constant
information sharing.
 Local Community
Volkswagen director need to guarantee that they are advising each gathering according to their
necessity so it don't experience the ill effects of any absence of asset or authorization (Haley,
Haley and Tan, 2011). There are sure focuses that will state about significance of partner
examination for Volkswagen:
• It will help association in improving its idea of double development (societal and
friends benefits are accomplished together).
• Motivates people working for organization
• Aids in system detailing and usage.
• It help organization in adjusting its assets and also guarantee that partners are
profited.
14

Appropriate data sharing and satisfaction of requirements will permit organization in
fulfilling its partner from all viewpoints.
2.4 New strategies for Volkswagen
In the wake of breaking down organization abilities and additionally natural issues, there are
need of receiving another technique (Li and Tan, 2013). This will help organization in beating
issues that are hampering its capacity to serve market and increment its gainfulness. VW AG is
known for its proficiency rate and it is fundamental for association to look after it. Essentially
this arrangement of activity will permit supervisors in planning organization for conquering
issues that may hamper its abilities in future. Volkswagen needs to reimburse back punishments
adding up to $19 BILLION to the natural offices in USA. This has set up trouble on organization
funds and assets. It is a quickly developing firm which now needs a system that will restrain
asset utilization and permit it in keeping up natural development rate.
As distinguished there is necessity of an arrangement of activity that will keep every one of the
accounts and assets at ideal level. The organization will utilize Limited Growth Strategy which is
centered around expanding tie up with other auto producers by means of utilizing Joint wander
and key union as an essential instrument (Melville, 2010). Additionally, the organization will
concentrate on expanding its separation in advertise and guarantee that shoppers are pulled in by
it. The watchman non specific procedures will be utilized for accomplishing a condition of
focussed separation in advertise. Likewise, joint wander will be created quite recently like
organization did in China where it has two unique accomplices in independent locales. This is
help Volkswagen in decreasing the measure of venture that it can make and furthermore keep up
its abilities. The constrained development procedure will permit it in venturing into new markets
while contributing least assets.
3.1 Alternative strategies for Volkswagen
An organization has numerous options that it can use for dealing with its exercises and achieve a
more elevated amount of efficiency. It needs to direct a top to bottom investigation of different
angles that are identified with advertise passage and further development (Meskendahl, 2010).
The organization additionally need to hold up under the weight that are imposed on it by the US
natural specialists for infringing upon laws of land. There are diverse methodologies that can be
utilized by it:
15

• Market entry: There are different modes which can be utilized for en-attempting into
a market. The best strategy that can be utilized by Volkswagen is to create vital
partnership with a nearby organization before putting gigantic sum in the nation. In
this procedure, organization shapes a cooperation and let the other party oversee and
offer its items and administrations from its outlets in the nation.
• Substantive development: This is a methodology which is utilized by association that
have a lot of assets with itself. The supervisor apply even and in addition vertical
approach towards advertise and guarantee that they can develop piece of the pie of
association adequately (Mithas and Lucas, 2010). Merger and procurement is
improved the situation upgrading association capacities. This procedure isn't
applicable for Volkswagen in the given case situation as it needs to lessen costs.
• Limited Growth: This is procedure that is utilized by organizations when there is
absence of assets. Essentially, rather than putting all its own particular assets in
extension, association frames tie up's with local makers (Montgomery, 2011). This
permits them in setting up themselves in advertise while likewise developing
capacities for future extension. The favoured technique utilized as a part of this
system is joint wander.
o This is the best system for Volkswagen as it needs to keep up its present abilities
while additionally venturing into showcase. It will permit them in keeping their
assets utilization at an ideal level.
• Retrenchment: This is an exceptionally compelling system for those business that are
wiped out or experiencing higher misfortunes. In this organization auctions its
advantages for pay back its obligation and secure its vital assets. Yet, this isn't the
methodology that will help Volkswagen in current conditions as it would prefer not to
diminish its capacities
3.2 Justification of selection of strategy
The organization needs a technique for guaranteeing that its capacities are kept up and are not
hampered at all conceivable. The organization has a boundation to pay back tremendous
punishment of $19 billion dollar which isn't simple as it would seem that. Association needs to
discover distinctive ways which it can use for keeping up its present capacities and furthermore
increment them in the meantime (Scholes, 2015). There is prerequisite of higher viability and
16

proficiency that will be supported by the expressed procedures. There are particularly three
unique reasons that are behind utilizing constrained development procedure, they are expressed
beneath:
• Optimum method for rationing assets and also abilities.
• Keeps focused edge in showcase in place
• It will help organization in paying punishments without ceasing real tasks
The constrained development methodology will help in limiting asset utilization by expanding
productivity. The nature of items will likewise remain in place while aggressive edge of
organization in market will likewise be kept up (Smith, Mills and Dion, 2012). The cost
lessening and picture building will be a vital result of usage of this arrangement of activity. For
instance association has done in China, it has shaped two diverse joint wander where assembling
will be finished by the firm while Volkswagen will concentrate on consumer loyalty and
showcasing exercises.
4.1 Roles and responsibilities of personnel in strategy implementation
There are diverse administrative levels that are pervasive in the association. Everybody has an
arrangement of parts and obligations to satisfy as expressed by their position in the organization.
The new technique will build the workload of individuals as to expand proficiency (Spender,
2014). This must be overseen by directors in a viable way by making a set way that can be taken
after for actualizing a technique. There are different individuals associated with the procedure
and they have diverse duties according to their activity position. They are expressed underneath:
 Senior management: They are the one who formulate strategies and ensure that company
is prepared to take on all the ventures.
 Managers: These people are responsible for implementing all the changes that are there in
strategy and polices of company.
 Engineers: They are the ones who are engaged in manufacturing and the very core
process of preparing products.
 Expatriates: These individuals are specialists who are assigned to overlook at all the
activities that are taking place in other/foreign countries.
4.2 Resource requirement for implementing new strategy for VW AG
With each adjustment in procedure the need of assets changes. At the point when forceful
changes are proposed, they require greater venture then the guarded strategy. Essentially, any
17

new changes should be coordinated into association center process so every last undertaking is
finished in a set timeframe (Teece, 2010). The required assets in the present case are expressed
underneath: Financials support: These are very vital for business as money allows people in
completing task as it aids in buying out raw material and all other required things. People: They are the ones who are required to work on process as well as machine. Raw material: It is important for manufacturing cars and its parts.
 Fixed: These are the facilities that have to be maintained by car makers all around the
world.
4.3 Contribution of SMART targets in business strategy
The directors need to set objectives and goals on the premise of SMART targets so they can
indicate destinations and lift responsibility of people occupied with assignment. Essentially, this
idea is centered on bifurcation of assignment as to improve each movement and help individuals
in understanding the necessities all the more properly. The SMART targets permits association in
making process more effective as objectives are exceptionally sensible, indicated, quantifiable,
precise and time bound (Verbeke, 2013). This idea can be comprehended with the held of an
illustration if a man is advised to work 48 hour seven days than he may get terrified with
increment working time yet in the event that he is advised to work 8 hours per day, at that point
he will have the capacity to do it with no mental weight. There are sure SMART focuses for
Volkswagen:
• The organization can venture into creating markets, for example, African landmass
presents numerous open doors.
• Boosting productivity rate by 20% of every 2 years.
• Improving offers of organization by 10% all around in next 2 years.
• Boosting creation rate while keeping up current capacities by 2%.
CONCLUSION
This report has been finished in the scenery of punishments collected by US natural
organizations. It has secured different angles that will permit organization in enhancing its
conductivity and execution in long haul. Business system is an arrangement of activity that is
utilized by organization for setting a way for its representatives as to accomplish its objectives
18

and goals. Authoritative examining device SWOT is utilized by Volkswagen for investigating
and assessing its own capacities against showcase models. Likewise, PESTLE investigation is
directed for distinguishing effect of outer factors in a successful way.
19

REFERNCES
Books and Journals
Astrachan, J. H., 2010. Strategy in family business: Toward a multidimensional research agenda.
Journal of Family Business Strategy. 1(1). pp.6-14.
Bharadwaj and et. al., 2013. Digital business strategy: toward a next generation of insights.
Campbell, D., Edgar, D. and Stonehouse, G., 2011. Business strategy: an introduction. Palgrave
Macmillan.
Casadesus-Masanell, R. and Ricart, J. E., 2010. From strategy to business models and onto
tactics. Long range planning. 43(2). pp.195-215.
Eccles, R.G. and Krzus, M.P., 2010. Integrated reporting for a sustainable strategy: One Report
has the potential to significantly change how companies operate and investors think,
shifting the focus from that of meeting short-term financial goals to developing a long-
term business strategy that not only makes a commitment to corporate social
responsibility, but also to a sustainable society. Financial executive. 26(2). pp.28-33.
Elliot, S., 2011. Transdisciplinary perspectives on environmental sustainability: a resource base
and framework for IT-enabled business transformation. Mis quarterly. 35(1). pp.197-
236.
Hahn, T., Kolk, A. and Winn, M., 2010. A new future for business? Rethinking management
theory and business strategy. Business & Society. 49(3). pp.385-401.
Haley, G. T., Haley, U. C. and Tan, C., 2011. The Chinese Tao of business: The logic of
successful business strategy. John Wiley & Sons.
Li, Y. and Tan, C. H., 2013. Matching business strategy and CIO characteristics: The impact on
organizational performance. Journal of Business Research. 66(2). pp.248-259.
Melville, N. P., 2010. Information systems innovation for environmental sustainability. MIS
quarterly. 34(1). pp.1-21.
Meskendahl, S., 2010. The influence of business strategy on project portfolio management and
its success—a conceptual framework. International Journal of Project Management.
28(8). pp.807-817.
Mithas, S. and Lucas, H. C., 2010. What is your digital business strategy?. IT professional.
12(6). pp.4-6.
Montgomery, C. A. ed., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Smith, T. A., Mills, A. M. and Dion, P., 2012. Linking business strategy and knowledge
management capabilities for organizational effectiveness. In Conceptual Models and
Outcomes of Advancing Knowledge Management: New Technologies (pp. 186-207). IGI
Global.
Spender, J. C., 2014. Business strategy: Managing uncertainty, opportunity, and enterprise. OUP
Oxford.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Online
20